Casini, Paolo Riera, Olivia Monteiro, Paulo Santos
Year of Publication:
LICOS Discussion Paper Series 362
In the context of a collective household choice model, we show that the effects of improved credit access on search intensity by the unemployed are heterogeneous across households and dependent on the within-household bargaining power of the unemployed. We find empirical support for the predictions of our model using a household survey conducted by the authors in Cape Verde. These findings have important implications for the optimal design of microfinance programs, in particular concerning the targeting of loans and the use of microfinance as an instrument to support improved labor market outcomes.
Microfinance Bargaining Power Collective Household Job Search